Huawei founder and CEO Ren Zhengfei say his firm is reviewing future contracts with U.S. suppliers, even as those firm’s appeal to Washington for relief from a trade blacklist that stops them from selling to the Chinese telecommunications firm.
In an exclusive interview with Yahoo Finance, Ren maintained his desire to “still be mates” with firms like Qualcomm, Intel, and Google, however, admitted Huawei would take a cautious strategy transferring forward.
“Before now, we have been comfortable with signing 10-year contracts with U.S. corporations, buying giant quantities of goods from them,” he mentioned. “However, now, we have to sign smaller contracts on a rolling basis in case they not sell us certain components; all the other parts will turn out to be useless. By just signing smaller contracts on a rolling basis, we will more easily bear the losses attributable to a supply problem.”
On Monday, semiconductor and software executives met with Treasury Secretary Steven Mnuchin and White House Economic Advisor Larry Kudlow to debate the U.S. ban on sales to Huawei.
The corporate sourced $11 billion in items from U.S. corporations last year out of a $70 billion global procurement budget for components and parts. However, the telecommunications giant has mostly been cut off from those suppliers since the Department of Commerce added Huawei to the Entity List in May, requiring American corporations to apply for export licenses to continue selling to the Chinese.
While, Commerce Secretary Wilbur Ross has backed off since, saying the department would begin permitting American companies to sell elements that do not pose “a national security risk” to Huawei, he has not provided specifics.